Applied Materials agrees to buy Varian Semiconductor for $63 a share in cash, or about $4.9 billion.

The price, the companies said in a press release, represents a 55% premium to Varian's closing price Tuesday of $40.55, or a 38% premium to Varian's 30-day average closing price.

Varian supplies ion implantation equipment used by chipmakers.

Applied Materials said the transaction is expected to be accretive to its earnings on a non-GAAP basis in the first year.

"Varian is a great fit for our strategy to profitably grow share in our core semiconductor business with best-in-class technology and talent," said Mike Splinter, Applied Materials' chairman and CEO, in a statement.